GWADAR (September 18 2005):The government has decided to construct a new international airport at Gwadar with state-of-the-art facility having world-class standard. This was announced by Prime Minister Shaukat Aziz who was speaking at the foundation stone laying ceremony of Gwadar Industrial Estate on Saturday.

He said that till the completion of the new international airport the existing airport is being upgraded, and necessary facilities were being provided so that there could be frequent communication between Karachi and Gwadar. Shaukat Aziz said that the Gwadar will not only be an industrial hub, but also attract tourist since it has got great potential for tourism.

He said that this is a historic day and pointed out that six years ago when President General Pervez Musharraf took over power he saw a dream of making a world class port in Gwadar and added that today we are seeing this dream becoming a reality.

He said that the President took up the matter of building of Gwadar port with Prime Minister of China who readily agreed to the proposal, so this port is a gift of China. The Prime Minister said that the seaports change the destiny of regions and countries.

He pointed out that six years ago, the President promised roads for Gwadar and that promise has been fulfilled with the construction of Coastal Highway which goes up to north and shall be a crucial link for Afghanistan and Central Asia.

Shaukat Aziz said, "We have to open our minds and allow foreign investors to come up with their investment which will usher in an era of prosperity and help create employment opportunities."

The Prime Minister said that in case the local skilled labour was not available we should welcome with open heart skilled people from other regions for development, progress and prosperity of Gwadar, which is not only in the interest of the-people of Gwadar and Balochistan, but also in the interest of Pakistan.

Shaukat Aziz announced that the federal government will establish Export Processing Zone in Gwadar on fast-track basis and will extend Coastal Highway up to Iran to promote trade and commerce with it.

In this connection, the Prime Minister said that import of gas from Iran will transform Balochistan and a decision on gas pipeline project with Iran after consideration of all aspects will be made in the national interest.

He said that local bodies' elections have demonstrated that people have rejected anti-development and negative forces.

Shaukat Aziz announced Rs 10 million for water supply to Gwadar and in response to demand of Balochistan chief minister Jam Mohammed Yousuf for desalination plant, he said that the government will bear half of the cost of desalination plant which will be grant of federal government.

Earlier, in his welcome address Jam Mohammed Yousuf said that Prime Minister Shaukat Aziz's contribution towards development of Gwadar and construction of port here are laudable and commendable.

He said that it seemed like a dream but Shaukat Aziz has made it a reality.

Meanwhile, groundbreaking ceremony of Gwadar Port Civic Centre was also held on Saturday.

In his speech at the ceremony the Prime Minister said that the federal government was spending a record Rs 134 billion on mega projects for development in Balochistan.

"This has never happened in the history of Balochistan that such mega projects were ever carried out at one time," Shaukat Aziz noted, amid applause.

Balochistan Governor Owais Ahmed Ghani, Chief Minister Jam Mohammad Yousuf, Minister for Port and Shipping Babar Khan Ghauri, Minister for Social Welfare and Special Education Zobaida Jalal and Minister for Petroleum Naseer Mengal were also present on the occasion.

He said that this year Rs 21 billion had been allocated under annual development programme for Balochistan, which was about 10.5 percent of total outlay. "This is more than the share of Balochistan, in terms of population ratio to other provinces," he added.

Shaukat Aziz directed the Gwadar Port Authority (GPA) to complete construction of Civic Centre within 18 months and undertake construction work on its own and not on built, operate and transfer (BOT) basis.

He said that minister of ports and shipping Babar Khan Ghauri was a man of action and he would ensure that work is completed in the stipulated time.

He said that this is a costly project and will be a model Civic Centre in the country, having offices, bank branches, utility store and residential blocks.

He announced the establishment of USC store in Gwadar, saying that it would be operational before the start of Ramazan.

He said that 500 out of 1000 houses would be given to fishermen at the housing scheme in Sur Bandar area.

Shaukat said he wants to take Pakistan on the road of development and prosperity and added that never in the history of Pakistan such development schemes were carried out by any government.

He said that people have been witnessing progress on these projects and therefore they would reject pessimistic elements.

The Prime Minister said that Gwadar Port would generate economic activity in the area and road network would connect it with Afghanistan, Iran and Central Asia as the most important route in the region for transportation.

The Prime Minister said that the federal government would spend all money on development projects as the government has decided to federalise the schemes for rapid progress on these projects.

He said the second phase of Gwadar Port would start after completion of Phase-I. The GPA has been asked to make this port operational and market its facilities.

Shaukat advised the people of Balochistan to welcome investment in Gwadar. "The world has changed and this is the era of globalisation and you must welcome investors in Gwadar," he added.

The Prime Minister said that investment would open avenues for further development and generate job opportunities in Gwadar.

He said the government was working on a project to attract tourists to Gwadar. He said: "Hotels are coming up very fast, and I am happy to see new hotels in Gwadar, especially Pearl Continental Hotel."

He said that first flight of new ATR aircraft of PIA, replacing Fokkers, would land at Gwadar airport. "I have asked PIA to use this new aircraft on Karachi-Gwadar route," he added amid applause.

Addressing Senator Ismail Buledi, the Prime Minister in a lighter mood said that opposition "also supports our good work". He said the opposition should make positive criticism and also suggest remedies to help the government in the redressal of the problems.

He said that government wanted to set up a mega refinery at Gwadar to refine crude and supply in the region.It would be a mega project and would take time. But the thinking on this project should start now, he noted.

He said that Balochistan government should further improve its governance and bring in more transparency in the working. The Prime minister noted that Balochistan has vast potential for development in agriculture, energy, livestock, mining, fisheries sectors and the government would explore all potential. "These sectors will generate employment opportunities."

ISLAMABAD: The government disclosed on Thursday that the financing and development of Gwadar International Airport had been “taken over by China” and that the Civil Aviation Authority would not be involved with the process.

In addition, the controversy over the change in the route of the $35 million Pak-China Economic Corridor deepened as government officials continued to contradict each other over the reasons for the change.

Planning and Development Secretary Hassan Nawaz Tarar told a Senate committee that a special board had been established to oversee the construction of Gwadar airport. Pakistan People’s Party Senator Fateh Mohammad Hassani alleged that land for the airport — worth Rs100 million — had been purchased at Rs1.5 billion.

Controversy over change of route of Pak-China Economic Corridor

The government has already handed over the development and operations side of the Gwadar Deep Sea Port to China, after withdrawing the rights originally granted to Singapore.

Change of route: A number of senators walked out of the Senate Standing Committee on Finance and Revenue meeting over what they termed “the conflicting statements of federal ministers and secretaries about the route of the multi-billion dollar project”.

The government currently favours the Gwadar-Karachi-Lahore route, also known as the ‘eastern route’; whereas opposition members preferred the original ‘western route’ of Gwadar-Dera Ghazi Khan-Dera Ismail Khan.

The former, they said, bypassed “Pakh­tun and Baloch areas” and demanded that the original route be restored.

On Wednesday, Tarar told the committee that a proposal to change the route was being considered at the request of the Chinese. But at Thursday’s meeting, he said the original route was never discussed with the Chinese at any stage.

His statement was contradicted by the additional secretary for communications, who told the committee that both route options had been shared with the Chinese, who showed a greater interest in the eastern route.

This led certain senators, led by the Awami National Party’s Haji Ilyas Bilour, to deplore the contradictory statements coming from government officials and alleged that Planning and Development Minister Ahsan Iqbal had ‘misled’ the committee. Mr Iqbal had told the committee on Wednesday that both routes were considered, but the government opted for the eastern route because it was possible to develop most of it on a build, operate and transfer (BOT) basis, without too much external financial assistance. Developing the western route, he had said, would require heavy borrowing, which the country could not afford.

Former finance minister Saleem H Mandviwala said that he had met the Chinese ambassador, who said his government had no role in the change of route and were fine with whichever route was chosen as long as Pakistan could guarantee its security.

Sardar Hassani demanded that the western route be reinstated, a view supported by a majority of members.

Mr Iqbal later told journalists that the route for the corridor had not been changed; rather both options were always part of the plan. He added that the western route was not viable at this stage because parts of it could not be developed on a BOT basis.

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